Location, Regional Accessibility and Price Effects: Evidence from Twin Cities Home Sales

15 Pages Posted: 9 Jan 2011 Last revised: 20 Jan 2011

See all articles by Mike Iacono

Mike Iacono

University of Minnesota - Twin Cities

David Matthew Levinson

affiliation not provided to SSRN

Date Written: July 29, 2010

Abstract

Regional location factors, with measures of regional accessibility foremost among them, exert a strong influence on urban property markets. While accessibility represents an important regional-scale factor, more local influences such as proximity to urban highway links may also positively or negatively influence the desirability of a location. In this paper, we use a cross-section of home sales in Hennepin County, Minnesota from the years 2001 through 2004, along with a set of disaggregate regional accessibility measures, to estimate the value of access to employment and resident workers. We also estimate the (dis)amenity effects of locations near major freeway links that have recently undergone, or were scheduled to undergo (as of the time period covered by the home sales), major construction to add capacity. The richness of the home sales data set allows us to control for a number of structural attributes, as well as some site characteristics, while additional neighborhood characteristics (such as income levels and local educational quality) are added from supplemental data sources. Empirical results indicate that households highly value employment access, while access to other resident workers (i.e. competition for jobs) is considered a disamenity. Proximity to local highway access points is positively associated with sale price, while proximity to the highway link itself is negatively associated with price. The paper concludes with some implications for research and practice of the concept and measurement of the relationship between location and land value.

Keywords: accessibility, transportation, home sales, employment acess, land value

JEL Classification: P46, R40, R41

Suggested Citation

Iacono, Mike and Levinson, David Matthew, Location, Regional Accessibility and Price Effects: Evidence from Twin Cities Home Sales (July 29, 2010). Available at SSRN: https://ssrn.com/abstract=1736213 or http://dx.doi.org/10.2139/ssrn.1736213

Mike Iacono

University of Minnesota - Twin Cities ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

David Matthew Levinson (Contact Author)

affiliation not provided to SSRN

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